How Does The Food Program Affect Your Taxes?

[jenboo]

Now that I'm on the food program, I'm wondering how it will affect me come tax time.

[TomCopeland]

Now that I'm on the food program, I'm wondering how it will affect me come tax time.

You will report as income the money you received from the food program. If you receive any money for your own children, that money is not income. You can claim as a food expense all the meals/snacks you serve, including those you are reimbursed for.

So, you will pay more in taxes, but you will have more money left over after paying the taxes. For example, if you got $4,000 from the food program and pay 15% Social Security tax and 15% federal income tax, you will owe $1,200 in taxes.

[Annalee]

You will report as income the money you received from the food program. If you receive any money for your own children, that money is not income. You can claim as a food expense all the meals/snacks you serve, including those you are reimbursed for.

So, you will pay more in taxes, but you will have more money left over after paying the taxes. For example, if you got $4,000 from the food program and pay 15% Social Security tax and 15% federal income tax, you will owe $1,200 in taxes.

Hi Tom,

When I first began on the food program 22 years ago, I was given a choice to either count the fp reimbursement or not because it is basically a "wash".. When did the IRS require the reimbursement to be counted as income? Thanks!

[jenboo]

You will report as income the money you received from the food program. If you receive any money for your own children, that money is not income. You can claim as a food expense all the meals/snacks you serve, including those you are reimbursed for.

So, you will pay more in taxes, but you will have more money left over after paying the taxes. For example, if you got $4,000 from the food program and pay 15% Social Security tax and 15% federal income tax, you will owe $1,200 in taxes.

So when I claim the meals, so I claim by how much I spent on groceries or how many meals I served (I can't remember what it's called.... The standard food allowance?)

[rebekki78]

So when I claim the meals, so I claim by how much I spent on groceries or how many meals I served (I can't remember what it's called.... The standard food allowance?)

You claim money the FP reimburses you as income. You then use the Standard Meal Allowance to claim each meal as an expense. The FP only lets you claim 3 meals, where as the Standard Meal Allowance allows you to claim more meals on your taxes a you can on your FP. If you are not on the FP you claim each meal served to each child under the Standard Meal Allowance. Or you can claim the ACTUAL money you spend on childcare children and their food if you keep all of your receipts and add them up. I find it much easier to use the Standard.

[jenboo]

You claim money the FP reimburses you as income. You then use the Standard Meal Allowance to claim each meal as an expense. The FP only lets you claim 3 meals, where as the Standard Meal Allowance allows you to claim more meals on your taxes a you can on your FP. If you are not on the FP you claim each meal served to each child under the Standard Meal Allowance. Or you can claim the ACTUAL money you spend on childcare children and their food if you keep all of your receipts and add them up. I find it much easier to use the Standard.

Perfect. Thank you!

[TomCopeland]

food program

Hi Tom,

When I first began on the food program 22 years ago, I was given a choice to either count the fp reimbursement or not because it is basically a "wash".. When did the IRS require the reimbursement to be counted as income? Thanks!

The IRS publications have always said you could report the "net" of the reimbursements and your food expenses. So, if you got $4,000 in reimbursements and spent $3,000 on food, you would show $1,000 as income and zero as an expense.

But, it would be extremely rare for this to be a "wash" because even if you are on Tier I, the rate goes up each July, so it's never a wash. If you ever serve one unreimbursed meal or snack it is not a wash.

Recent IRS publications say to report all the income from the Food Program and then claim your food expenses.